Save on Car Insurance Premiums with a Teen Driver This Holiday Season

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With the holiday season approaching, your teenager might be dreaming of getting a new car as the ultimate gift.  When your teenager begins driving, be prepared for higher premiums.  Premiums on existing policies can increase by up to 50% when you add a female teenage driver and up to 100% when you add a male teenage driver.  If your teenage does get a car or access to a car this holiday season, you must add them to your policy if they are under  18 years of age and cannot purchase their own policy.  However, this is a great time for you to talk to your teenager about how much your premiums will increase and some of the ways you can get the best price on premiums, both now and for your teenager in the future. 

Keep Their Grades Up

Discounts of up to 25% are available for teenage drivers who maintain a B average.   Call your current car insurance agent and see if your policy includes this discount.  If it does not, shop around.  

Be a Safe Driver

Make sure your teen knows that safe drivers pay lower premiums for car insurance.  If your teenager has an accident or causes expensive property damage, such as hitting a garage, your premiums will go up considerably when you renew.  If they keep it safe, your teenager will be able to get better deals on coverage and may qualify for “safe driver discounts” or “no-claims discounts” when they buy their own insurance someday.   Also, safety equipment on your teenager’s car, such as motorized seatbelts, airbags and anti-lock brakes can result in discounts of 10% to 30%.

Keep the Car Safe

Around the holiday season, explain to your teenager steps they can take to prevent their car from being broken into or being stolen.   Make sure teenager knows to park in a well-lit area and never leave presents or other valuables in the care.  Premiums will be lower if your teenager drives a car with an alarm or an immobilizer on the wheel.    

Take a Driving Course for Christmas?

If a teenager completes a formal driver training course through a private company, many car insurance companies offer discounts of up to 10%.   Discuss this option with your insurance agent to find out about driving courses in your area.   The cost of the course may pay for itself in less accidents and lower premiums in years to come.

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